This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more here.

Government tightens asset-backed pension contribution rules

  • Print
  • Comment

PricewaterhouseCoopers says changes to HMRC rules on asset-backed pension contributions will force schemes to revisit previously agreed funding deals.

In November last year the Government tightened rules around the arrangements, which involve a pension scheme using assets to help plug deficits.

PwC says revised rules announced today reduce the types of arrangements that will be eligible for tax relief.

PwC tax partner Alex Henderson says: “The rules released on November 29 have been tightened to ensure the Government doesn’t provide up front relief where the scheme might not ultimately receive value.

“Under the revised rules, there’s still plenty of scope for a wide range of companies to use asset backed arrangements, providing there’s a fixed agreement to pay annual amounts into the scheme. There’s scope to spread payments and companies can also stop payments if the scheme goes into surplus, so asset backed pension contributions can still be a viable and attractive option for an increasing number of organisations.

“But the changes announced today will reduce flexibility for the future and companies with arrangements in progress will need to review the new rules urgently to see how they are affected.”

  • Print
  • Comment

Daily Email Updates
If you enjoyed this article, sign up to receive the latest news and analysis from Money Marketing.

Money Marketing Awards 2015
Put your firm forward as the leading practitioner in your field. Adviser and Advertising categories are open to entries - Enter Now.

Have your sayEdit my profile/screen name

You must sign in to make a comment

Fund Data

Editor's Pick


Do you see the value in adviser trade bodies?

Job of the week

Latest jobs

View all jobs

Most recent comments

View more comments